2.4 Financial Condition and Activities - Chancellor Limitations

With respect to the actual, ongoing financial condition and activities, the Chancellor shall not cause or allow the development of fiscal jeopardy, non-compliance with local, state or federal laws, or a material deviation of actual expenditures from the Board's Outcomes priorities.

AMENDED October 22, 2013, Motion No. 10112
AMENDED February 22, 2011, Motion No. 9781, 9782

Financial Condition and Activities - Chancellor Interpretation

I interpret this policy to mean that the District will operate within a system of internal controls. Compliance is demonstrated by following Generally Accepted Accounting Principles and when the following activities occur:

  1. No expenditure for funds of more than has been received and carried forward in the fiscal year.
  2. No occurrence of inter-fund transfers in amounts that would cause a deficit fund balance in any fund.
  3. No occurrence in any fiscal year of District expenditures or indebtedness in an amount that reduces the ending General Fund balance to less than ten percent of General Fund revenues recognized during the fiscal year without Governing Board approval.
  4. Payroll and other District debts or obligations are settled in a timely manner. Timeliness is contingent upon the transaction.
  5. Tax payments or other government-ordered payments or filings are submitted accurately and on time.

AMENDED May 22, 2018, Motion No. 10567
AMENDED by Direct Chancellor Approval, June 16, 2015
REVISED November 26, 2013
ADOPTED May 24, 2011, Motion No. 9814